Kuwait to raise crude supplies to India

Kuwait will substantially increase crude supplies to India over the next four years and said it was worried about the impact of high oil prices on developing economies like India.

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By  Jyotsna Ravishankar Published  July 4, 2006

Kuwaiti oil minister, Sheikh Ahmad Al Fahd Al Sabah, said during his visit to India last month that he considers US $45-$55 a barrel as a stable price for benchmark US light, sweet crude oil futures on the New York Mercantile Exchange. “Any price between $45 and $55 would be good in my opinion,” Al Sabah said. Al Sabah said Kuwait was worried about the impact of high oil prices on developing economies, because they have a limited capacity to deal with the consequences. “The world economy is healthy but we are worried about the developing countries,” he said. Al Sabah added that the Organisation of Petroleum Exporting Countries was pumping at the maximum rate to stabilise oil prices. Al Sabah also said that Kuwait will substantially increase crude supplies to India over the next four years and investment opportunities in existing refineries in India are being scouted. “Kuwait is planning to raise crude oil supplies to India to 300,000 barrels per day (bpd) by 2010 from the existing 270,000 bpd,” he said. The minister said Kuwait is looking for opportunities to make investments in existing refineries in India and had signed two agreements in January with state-owned Indian Oil Corporation and one private refinery. “We want to upgrade existing refineries in India so that they can have secured supplies of investment and crude,” Al Sabah said. He said as the demand for crude oil in India is growing the fastest after China, and it will need a secure supply of oil. The minister indicated that once the refinery investments are worked out, Kuwait might also study opportunities in petrochemicals. Al Sabah was in India with Kuwaiti Emir Sheikh Sabah Al Ahmad Al Jaber Al Sabah on a four-nation tour, including Bangladesh, Thailand, India and Pakistan.

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